10 ms·
In a 1-person company, who or what generates a profit?
by jameslk 21d ago
In a 1-person company, who or what generates a profit?
- root_axis 21d agoOne person isn't a company. Legally maybe, but there's no point in a company if you can profitably do all the labor yourself.
- jameslk 21d agoAt what point does a company become a company if one person doesn’t make a company? What’s the threshold for non-labor where a company becomes a company?
- root_axis 21d agoI'd start with division of labor as a minimum.
- speleding 21d agoThere are holding companies with zero employees. They typically pay a management fee to someone.
- raegis 20d agoAttorneys commonly do this.
- sokoloff 20d agoI may be able to do all the labor myself, but need investors because I can’t afford the capital. I may be able to do all the labor myself, but want to ensure continuity beyond my ability or interest to do the labor myself. (Sometimes this is by my wish; sometimes by the wish of consumers of my service.) I may be able to do all the labor myself, but not want to expose my entire net worth to the financial obligations of the company. There are plenty of cases where a single person company makes good sense.
- binary132 20d ago“I am actually the CEO of my basement office business” was not the corporate topology I was addressing with my comment.